As the tech sector in LA grows due to the saturation of the tech industry in the San Francisco area, the same problems in Silicon Valley are now coming up. There’s a growing tension between the upstarts of the tech industry and the regular folks in the community surrounding this IT boom.
According to critics, what will follow in LA will be what happened in San Francisco if there’s nothing done about it. Regular people and longtime residents will feel alienated and looked down upon. They will feel like they’re being forced out by the higher rents and costs of homes as well as the prices of regular consumer goods.
That’s why more than 80 entrepreneurs and tech investors are joining Mayor Eric Garcetti and the non-profit Annenberg Foundation to launch PledgeLA. This is the LA tech community initiative that seeks to avoid what happened in San Francisco and to the people there who felt disenfranchised by the growing tech boom.
Features of the initiative include the following:
- More opportunities will be provided for everyone, regardless of race, background, or gender. So even non-white women who grew up poor should have the same opportunities as the white guys who grew up rich.
- Those who signed to the PledgeLA agreement will track civic participation and diversity data each year. That data will be made public so that people will know if a tech company is made up of exclusively white males from the Ivy Leagues and other top schools.
- Startups and funds will report on the composition of their workforce noting various factors. This won’t be just noting age, gender, and race. It will also note socioeconomic origin, educational attainment, and even sexual orientation to see if there’s bias against hiring members of the LGBT community. Other factors will include the status in regards to disabilities, immigration, and military service veteran. Even the tenure at a firm will be noted.
- The signatories also will come up with a proper code of conduct centered on diversity and inclusion, and diversity will be practiced in corporate hiring.
Good Business Sense
While many who signed PledgeLA did so out of a sense of moral and ethical rightness, it also makes good business sense to emphasize diversity on corporate hiring practices. A Diverse workgroup brings different points of views when it comes to making decisions. It helps with networking for sources of talent, and the diverse work group can help build a diverse consumer base as well.
LA has now become one of the top 5 US destinations for technology investment and it’s now one of the top tech hubs in the country. The top 100 tech companies in LA and Orange County has reported a 24% increase in employment within the last year.
There are a still a few notable holdouts to PledgeLA, however. Tesla and SpaceX have not yet signed on, and nor has Snap. But LA is an inherently diverse area, and such a diversity must be maintained in the tech workplace as well.